SEDCO Holding Annual Report 2012

Business Review 2012 / Direct Investments continuedTarfeeh (Arabian Entertainment Company)Arabian Entertainment Company –branded Tarfeeh – is a wholly ownedSEDCO subsidiary dedicated todeveloping and operating world-classrestaurant chains. Since Tarfeeh wasestablished in 1996 it has embarkedon an aggressive expansion planacross all regions of the Kingdom.With 600 employees, Tarfeeh is a leaderin Saudi Arabia’s casual dining market,operating the largest Applebee’sfranchise in the Middle East with 14restaurants, as well as the two outletsof its self-developed China Gate brand– a casual dining concept offering buffetstyle inter-continental cuisines.In 2012 Tarfeeh signed a franchisedevelopment agreement with anotherworld-class brand – Romano MacaroniGrill. This will be added to the portfolioin 2013, providing another strong growthchannel for the next five years. Furtheropportunities are being sought withinternational brands in segments thatmatch Tarfeeh’s strategy and values.Two new Applebee’s were opened in2012 – in Riyadh and Qaseem – andtwo more will follow in 2013 – Jizanand Jeddah – reinforcing the company’sstatus as the largest Applebee’sfranchise outside the USA. Applebee’shosted more than 1.5 million guests in2012 and 20 percent growth is projectedfor 2013. For this reason, total seatingcapacity will be increased toaccommodate more than 3,000 dinersat the same time. The launch of homedelivery in selected locations of theEastern, Western, and Central provincesadded a new revenue channel that willbe expanded to other markets in thecoming months.Older Applebee’s restaurants arenow being remodeled and revitalized,using the latest designs developed inthe US. In 2013, two restaurants will beremodeled, followed by all restaurantsin the chain over the next few years.A feasibility study is under way toevaluate and assess the potentialfor upgrading the China Gate concept –enabling developments in mallsand non-traditional locations suchas university campuses and highdensityareas.Tarfeeh’s new loyalty program hasprovided the opportunity for directcommunications and exclusivemarketing channels. It will also beused to offer customers flexibility inredeeming points with other businesspartners. In 2012, a mega campaign waslaunched in partnership with Pepsi toreward loyal guests with the opportunityto win three new cars and many othervaluable prizes. Ongoing success withcustomer relationship managementhas expanded the customer database– currently the biggest of any Applebee’sfranchise in the Middle East.Operationally, a sound platform hasbeen reinforced by establishing businessprocesses for all-important activitiesand adopting corporate governancepractices that rank among the bestin the industry.In 2012, employees and managementwere provided with specific trainingprograms and leadership developmentworkshops relevant to their jobrequirements and core competencyenhancements. All field employees weregiven an extensive training programrelated to customer service andsatisfaction through a new ‘e-university’where restaurant employees completean on-line training course for differentskill sets. Tarfeeh achieved one of thehighest scores on guest satisfactionin the region and among the top fivepercent globally.Tarfeeh strongly believes in supportingCSR activities and undertook severalsuch initiatives in 2012, including thestudent programs at CBA College andDar Al Hekma, Civil Defense Day, andthe ‘Dine to Donate’ during Ramadanwhich partners with guests insupporting local organizationsand social activities.At Applebee’s 2012 Global franchiseConference in Los Angeles, Tarfeehreceived the award for highest annualsales growth and was recognized asbeing among the best operators forthe brand’s ‘operations excellence’.Applebees staff (number of employees)20122011505201050520094962008480Applebees customers (thousands)201220112010200920089329218941,209The award for highest annual salesgrowth at Applebee’s 2012 Globalfranchise Conference in Los Angeles6001,50028 Annual Review 2012 29